Chopard Group 2012 Outlook and Expansion

Kong · 2012-03-08T20:50:23Z

Chopard Group reports strong 2011 sales and outlines 2012 expansion plans, including investments in Fleurier Ebauches and global boutiques.

Following a marked increase in sales in 2011, the independent family-owned Chopard group is approaching 2012 with serenity. Sustained by considerable investments in the realm of watchmaking and jewellery, several projects will reach fruition, particularly in the area of development and consolidation of the company’s industrial facilities.

2011 was a good year that saw a nearly 10% increase in sales, corresponding to 15% at consistent exchange rates. China strongly contributed to this increase, ahead of Europe which remained stable. The Chopard group made investments totalling CHF 50 million francs in its production sites in Geneva and Fleurier, as well as in the extension of its distribution network. It should be noted that this highly positive result was achieved in the context of a significant slowdown of the world economy, marked by substantial foreign exchange fluctuations, massive increases in the prices of raw materials – notably gold – and extreme difficulties experienced by certain European countries.

In 2012, Chopard will continue to commit the necessary means to pursuing its expansion. Nearly CHF 50 million will once again be invested in production equipment, the distribution network and other strategic projects.

A constantly developing distribution network

With the 1983 opening of its first ever boutique, in Hong Kong, Chopard began building a distribution network that now includes more than 130 boutiques and 1,500 points of sale across the world. In 2012, several openings are planned all over the world, and by the end of the year, China alone will have 30 points of sale including 11 new ones. Particular mention should be made of large-scale projects for new boutiques in Las Vegas, Shanghai, Beijing and Koweit, (total surface area of 460 m2). In autumn, the flagship stores on the Rue du Rhône in Geneva will be renovated and extended with the addition of a complete new floor. All the new opening and renovation projects will feature a new concept designed by architect Thierry Despont.

Jobs – more than 150 new positions created in 2011

The Group has also enjoyed considerable growth in the realm of employment opportunities. With the creation of more than 150 jobs, amounting to a 10% increase, particularly in Switzerland and in the company’s Chinese subsidiary, the total staff complement at the end of 2011 amounted to 1,965 employees all over the world. Between production and international administration, 750 people work at the main site in Meyrin, Geneva, where various new jobs are to be created during 2012.

Fleurier Ebauches

In 2007, Chopard acquired the old building belonging to the Fabrique d’Ebauches de Fleurier (from 1920 to 1932), located close to Chopard Manufacture. The building has been partially renovated and since 2009, has been home to Fleurier Ebauches S.A., which produces movement ébauches, thus allowing the Group to strengthen its vertical integration process and increase production of movements and components. The renovations will be complete at the end of 2012, and aside from the production units, the building also houses an important training centre. Fleurier Ebauches S.A. will produce some 5,000 movements for the Chopard group in addition to the 4,500 L.U.C haute horlogerie movements already produced by Chopard Manufacture. In the short term, between 15,000 and 20,000 units will be manufactured at Fleurier Ebauches – representing another key step towards greater industrial autonomy. The combined sites at Fleurier currently employ 150 people, and current plans include the creation of 30 more jobs.

Training and knowledge transfer

Training and knowledge transfer of the trades involved in watch and jewellery making has always been a priority for Chopard. Consequently, for many years, apprentices in both sectors have been trained at the company’s sites in both Geneva and Fleurier sites, where more than 30 young people will be pursuing their training in 2012.

Chopard certified by the Responsible Jewellery Council

As an independent, family business, Chopard is highly attentive to Corporate Social Responsibility (CSR) and for many years, has been involved in various philanthropic activities. Amongst these, environmental preservation has been a priority. Since 2010, Chopard has been partnering the WWF and in particular supporting the Tiger project, aimed at proteecting tigers in the wild.

Becoming a member of the Responsible Jewellery Council therefore represented a logical step. This certification is an acknowledgement of many years of efforts made by the group to reduce the impact of its management and manufacturing processes on the environment; and also testifies to Chopard’s desire to ensure the provenance of all materials used in the manufacture of its products.

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